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News Archive
What Would Yoda Say to Corporate America About D&I?
The closing session of the Plan Sponsor Council of America’s National Conference featured a wide-ranging and impactful conversation between American Retirement Association CEO Brian Graff and Mellody Hobson, President and Co-CEO of Ariel Investments and chairwoman of Starbucks. The discussion covered important topics to the nation’s retirement... Read More >>
DOL Releases Fiduciary Rule Guidance
The U.S. Department of Labor’s Employee Benefits Security Administration has issued guidance on fiduciary investment advice for retirement investors, employee benefit plans and investment advice providers. The guidance relates to the department’s “Improving Investment Advice for Workers & Retirees” exemption and follows its Feb. 12, 2021,... Read More >>
ARA Wins Removal of COLA Freeze from COVID Relief Bill
[UPDATED MARCH 5 AT 9:00 A.M. ET] Following weeks of intensive lobbying, the American Retirement Association has been successful in getting a provision pulled from the COVID relief bill that could have undermined retirement savings. The nearly $2 trillion American Rescue Plan Act of 2021 (H.R. 1319) passed by the House of Representatives Feb. 27 ... Read More >>
Is Winter Coming – or Over - for the Average 401(k) Balance?
Punxsutawney Phil’s shadow notwithstanding, it was – at least until the last week of the short month – a good one for US markets. But did the average 401(k) see its “shadow?” In January, the average 401(k) balance — as tracked by the non-partisan Employee Benefit Research Institute (EBRI)[i] got off to a slow start after a robust 2020. The average... Read More >>
IRS: Disregard Those Recent 2019 Form 5500 Extension Letters
If you have recently received approval of a filing extension requested last summer for your 2019 Form 5500 — you don’t need to do anything. We’ve heard that some plan sponsors are just now getting letters from the IRS approving the request for an extension in their Dec. 31, 2019 Form 5500 filing — months after the extended deadline. As you... Read More >>
COVID Relief Bill Puts Ceiling on DC Plan Limits
As part of the push to enact a nearly $2 trillion stimulus bill, the House Ways & Means Committee moved forward Feb. 11 with a proposal to freeze retirement plan contribution limits to help offset the cost of multiemployer plan relief. On a party-line vote of 25-18, the committee approved the Butch Lewis Emergency Pension Plan Relief Act of... Read More >>
New COVID Relief Bill Has Retirement Provisions
There’s some great news for plan sponsors in the COVID relief bill – a “temporary rule preventing partial plan termination.” The legislative text in the massive (nearly 5,600-page) bill includes in Division EE Section 209 a “temporary rule preventing partial plan termination.” The provision, for which the American Retirement Association has been... Read More >>
DOL Stepping Up Cybersecurity Focus
There’s been increasing awareness – and litigation – regarding cyber security and participant accounts – and the Labor Department has taken notice. Sources tell us that plan audits are now asking to see employers’ written cyber security policies and procedures – and asking about cyber security attacks, and the response(s) to them. Recent... Read More >>
Final Rule on Financial Factors in Investing Sidesteps ESG Focus
The final rule on ESG investing by ERISA plans steps away from the proposed rule’s focus on ESG. Indeed, the Labor Department notes that “unlike the proposal, the final rule’s operative text contains no specific references to ESG or ESG-themed funds.” Rather, acknowledging the fluid definition of environmental, social, and governance factors, the... Read More >>
2021 Retirement Plan Limits
Most of the key plan limits remain unchanged for 2021 from 2020 levels with the notable exception of the combined DC annual contribution limit, which increased to $58,000, and the annual compensation limit increase to $290,000. The ESOP maximum balance limit also increased. Below are the limits for 2019-2021 with changes highlighted. See IRS... Read More >>